NEW DELHI: In a large boost to the small companies, Union finance minister Arun Jaitley on Thursday said the GST Council has doubled the annual turnover exemption prohibit for the composition scheme. The council has higher the GST exemption prohibit to Rs 20 lakh from Rs 10 lakh for the north eastern states and Rs 40 lakh, from Rs 20 lakh, for the remainder of the country, Jaitley added.
The finance minister additionally said that the annual turnover for availing composition scheme has been higher to Rs 1.5 crore from Rs 1 crore, efficient from April 1, 2019.
Businesses underneath the scheme will now pay tax on a quarterly basis but the returns will be filed once a year, Jaitley added. Also, carrier providers and suppliers of each items and services as much as a turnover of Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 in line with cent. The GST council is headed through the finance minister.
The twin resolution underneath the composition scheme would have an annual earnings impact of about Rs three,000 crore.
Jaitley further mentioned that the small companies would have the opportunity to opt out of the GST tax internet.
Under the composition scheme, investors and producers will pay taxes at a concessional charge of one in line with cent, while restaurants pay 5 in line with cent GST.
For Kerala, the finance minister said that the state is now entitled to intra-state industry and can impose a cess of extreme 1 in line with cent for a duration of two years.
On including actual estate and lottery underneath the GST (Goods and Services Tax), the council made up our minds to shape a seven-member team of ministers after differences of opinion emerged at the meeting, Jaitley said.
The council additionally made up our minds that free accounting and billing software will be equipped to small taxpayers through GSTN.
There are over 1.17 crore companies which have registered underneath the GST. Of these over 18 lakh have opted for composition scheme.
The finance minister additionally said that the annual turnover for availing composition scheme has been higher to Rs 1.5 crore from Rs 1 crore, efficient from April 1, 2019.
Businesses underneath the scheme will now pay tax on a quarterly basis but the returns will be filed once a year, Jaitley added. Also, carrier providers and suppliers of each items and services as much as a turnover of Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 in line with cent. The GST council is headed through the finance minister.
The twin resolution underneath the composition scheme would have an annual earnings impact of about Rs three,000 crore.
Jaitley further mentioned that the small companies would have the opportunity to opt out of the GST tax internet.
Under the composition scheme, investors and producers will pay taxes at a concessional charge of one in line with cent, while restaurants pay 5 in line with cent GST.
For Kerala, the finance minister said that the state is now entitled to intra-state industry and can impose a cess of extreme 1 in line with cent for a duration of two years.
On including actual estate and lottery underneath the GST (Goods and Services Tax), the council made up our minds to shape a seven-member team of ministers after differences of opinion emerged at the meeting, Jaitley said.
The council additionally made up our minds that free accounting and billing software will be equipped to small taxpayers through GSTN.
There are over 1.17 crore companies which have registered underneath the GST. Of these over 18 lakh have opted for composition scheme.
Boost for SMEs: Exemption limit for GST hiked
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Reviewed by Kailash
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January 10, 2019
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